All the HVACs in the units above us have their drainage such that the water falls on our unit.

I think they are trying to pitch it as an opportunity for us to increase our share to when the sale happens foregoing the waterfall.

I should have taken the time to research market waterfall agreements at the time.

You arrange the LLC deal so that in the waterfall, you and Sis get the majority of profits over this baseline threshhold. 

You can change the exit cap rate in the basic assumptions tab cell H67 and see the effect on the IRR and EM in the Equity Waterfall (GP) tab cells V51 and V53.

(Assumable loan, Waterfalls/Hurdles, Ability to model a JV) I've come across "Synthesis" by Sharpline Equity.

The waterfall on either side makes the space kids friendly (no abrupt sharp edges).

It depends on how the waterfall rules are written in the operating agreement. 

In my eyes, all of the same diligence is needed in regard to sponsor and deal(s), but add to that prior operations by that sponsor, current financial analysis, current valuations in today's market with very limited trades happening as comps, what the effect of waterfall and fees will have on that position once you take over, etc.

As I grew in knowledge and experience, I started to learn what the average fee structure looks like and decided to pass on future investments with this sponsor. the way LP should look at the problem is not from the waterfall but from the financing structure IMO.There're very few funds that are doing well hitherto because they maintain they want to buy assets with DSCR 1.5 only and above and using fixed/debt combined with assumable loan (one can always assume loan) with discount.THe fact that many LP doesn't know these are possible (and there're offerings like these) .... is why people losing money unnecessariy